TOLA, 2020 does not affect Sanction Powers for Income Tax Reassessment: Delhi HC

The Delhi High Court ruled that the enactment of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act (TOLA) 2020 does not impact the Income Tax department’s sanction powers for reassessment notices under Section 147 of the Income Tax Act. The petitioner argued that post-TOLA 2020, the authority for issuing reassessment notices was modified. However, the court clarified that TOLA was introduced primarily to extend deadlines and relax compliance-related provisions due to COVID-19. The court held that the existing legal framework remains intact regarding reassessment notice sanctions. It dismissed the plea, reinforcing the department's authority to issue notices based on prior procedures, even after TOLA 2020 came into effect.